We have been seeing a good lot of discussions with opinions for and against the proposed move to bring in MDR (Merchant Discount Rate) on UPI transactions above INR 2500/-. Although MDR is charged to the seller (merchant), there are apprhensions that it may be indirectly passed on to the consumer (buyer).

What suprises me, is that there is absolutely no mention whatsoever of eRupee(CBDC). UPI, due to its popularity, has rendered eRupee obscure. Current situation, therefore, presents a good opportunity to promote eRupee. RBI and GOI should do it effectively. Merchants stand to gain by expanding the usage of eRupee, since it will continue to be free.

I have been using eRupee for couple of months now. My experience has been good. There are certain irritants though, and user (non-merchant) experience can be vastly improved. Following are a few things that I could think of as a banker:

1. No “standalone” wallet – You can only have a eRupee wallet linked to a bank account and NOT otherwise. If physical currency does not require KYC why should eRupee be subjected to this?
2. Bank specific apps – At present, each bank has its own eRupee app associated with a distinct wallet. Imagine having to carry two physical wallets in your pocket, one for money drawn from bank A and another for bank B!. Ideally users should be able to use a single wallet that can be loaded from any bank account and redeemed for credit to any bank account.
3. Poor responsiveness – eRupee apps, at times, either do not work (unresponsive) or take a lot of time. I was forced to use UPI apps to complete a transaction at many locations.
4. Can not download transaction history – This is a serious problem. The apps do not provide any mechanism to download transaction history. Even screenshots are not possible.
5. Failed transactions not reported – Transaction history does not show failed transactions. The details available for successful transactions is also incomplete/inadequate (e.g., destination UPI ID is not shown)
6. Sending money – While merchant payments are possible by scanning a UPI QR code, personal payments can only be made to other eRupee wallets and NOT to bank accounts or UPI IDs.
7. Not able to load wallet with physical currency – It would be good if the user is allowed to deposit cash into wallet through ATMs.